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To: Razorbak who wrote (84810)	1/19/2001 9:31:36 PM
From: Razorbak	Respond to of 95453

"Moody's: Petroleum Geo-Services Sr Baa3 Rtg Affirmed" Updated: Friday, January 19, 2001 01:07 PM ET New York, January 19, 2001--Moody's Investors Service confirmed the senior unsecured debt ratings of Petroleum Geo-Services ASA (PGS, news, msgs) at Baa3 with a stable outlook following the company's announcement regarding the likelihood of weaker than anticipated earnings for the fourth quarter of 2000 as a result of continued weak conditions in the marine seismic industry. The company also announced a one-time non-cash pre-tax charge of approximately $365 million, partially offset by one-time pre-tax gains of approximately $230 million. The rating confirmation and stable outlook are based on management's commitment to complete its previously announced program to sell $500 million of non-core assets over the next twelve months. PGS currently has pending non-core asset sales of approximately $260 million. The Baa3 rating also assumes that management will continue to reduce the company's financial obligations and achieve a ratio of debt to total capitalization of approximately 50% by the end of 2001. Moody's believes PGS' cash flow will improve once its Ramform Banff and Petrojarl I FPSO vessels are back in production under long-term contracts and the marine seismic industry begins to recover. Moody's expects the marine seismic industry to remain relatively weak until the second half of 2001, when oil company spending on marine geophysical information is likely to rise. However, Moody's will continue to monitor developments in the sector, as continued weakness in the demand for marine seismic data beyond this timeframe, combined with the potential for increased competition caused by industry consolidation, could delay management's efforts to reduce the company's financial obligations beyond the level expected to result from the application of non-core asset sale proceeds to debt repayment. Ratings confirmed are the Baa3 senior unsecured notes, the Ba1 junior subordinated debt securities, and the (P, news, msgs)Baa3/Ba1/"ba1" shelf registration for senior unsecured debt/subordinated debt/preferred stock of Petroleum Geo-Services, ASA; the Baa2 guaranteed first preferred mortgage notes of Oslo Seismic Services, Inc.; the "ba1" guaranteed trust preferred securities of PGS Trust I; and the (P, news, msgs)"ba1" shelf registration for preferred securities of PGS Trust II. Headquartered in Houston, Texas and Oslo, Norway, Petroleum Geo-Services ASA is a leading provider of marine seismic services to the oil and gas industry. The company is also involved in the supply and management of floating and fixed production facilities. qw2001.quicken.com